...Outlook Revised to Stable: The revision of the Outlook on Asia Commercial Bank (Vietnam)s (ACB) Long-Term IDR to Stable from Negative on 30 June 2014 reflects Fitch Ratings view that downward pressures on the financial profile have eased, including deposit flight risks and significant impairment risks arising from exposure to companies related to one of ACBs shareholders, Mr Nguyen Duc Kien. Liquidity Maintained: ACBs deposits have been increasing year on year (H114: +7%, 2013: 10%), due in part to franchise-rebuilding efforts, after falling in 2012 from large deposit withdrawals following the arrest and probe into the activities of Mr Kien. The bank has also been disciplined in maintaining a reasonably liquid balance sheet. Its loans/deposits ratio was 75% at end-H114, which is consistently lower than that of its major local peers. Asset-Quality Risks: ACBs NPL ratio will rise further under Circular 2, which will be a stricter rule in classifying and provisioning NPLs when it is fully...
